Reborn Coffee, Inc. (REBN) AI Stock Analysis

• Market Cap: $13.89M
• Dividend Yield: N/A
• Average Volume (3M): 73.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 3.39%
• EPS Growth: 39.45%
• Country: US
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 5,303,306
• 10 Day Avg. Volume: 42,954
• 30 Day Avg. Volume: 73,487
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: -2.02
• 1Y Price Target: $2.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $2.50 ▼(-15.25% Downside)

Reborn Coffee, Inc. faces significant financial challenges with high leverage and negative cash flow, impacting its overall score. While technical indicators show some short-term strength, the negative valuation and risk of Nasdaq delisting weigh heavily on the stock's outlook.

Reborn Coffee, Inc. Business Overview & Revenue Model

Company Description

Reborn Coffee, Inc. operates and franchises retail locations and kiosks that focus on serving specialty-roasted coffee in California. The company purchases, roasts, and sells coffee, tea and other beverages, and various food items. As of September 30, 2021, it operated 7 retail locations. Reborn Coffee, Inc. was founded in 2014 and is based in Brea, California.

How the Company Makes Money

Reborn Coffee, Inc. generates revenue primarily through the sale of its coffee products across various channels. The company operates physical retail locations where customers can purchase freshly brewed coffee and related products. Additionally, Reborn Coffee sells packaged coffee beans and merchandise through its online store, expanding its reach to a broader customer base. The company may also engage in strategic partnerships with other businesses to enhance its distribution and brand presence, contributing to its earnings.

Reborn Coffee, Inc. Financial Statement Overview

Summary

Reborn Coffee, Inc. exhibits strong revenue growth but is hindered by operational inefficiencies, high leverage, and negative cash flow. The company's financial health is concerning due to consistent losses and a heavy reliance on debt financing, posing significant risks.

Income Statement

Reborn Coffee, Inc. has shown consistent revenue growth from $617,821 in 2019 to $5,928,533 in 2024, indicating strong top-line growth. However, the company is facing significant challenges with profitability, as evidenced by consistently negative EBIT and net income margins. This suggests operational inefficiencies or high costs that are not being offset by revenue growth.

Balance Sheet

The balance sheet reflects a concerning financial structure with a high debt-to-equity ratio and negative equity in earlier years, improving to positive equity in 2024. However, the debt levels remain significant relative to equity, indicating potential financial risk. The company's equity ratio is low, showing reliance on debt financing.

Cash Flow

The company's cash flow statement highlights negative free cash flow each year, indicating that Reborn Coffee, Inc. is not generating enough cash from operations to cover its capital expenditures. This has resulted in reliance on financing activities to maintain liquidity. The operating cash flow to net income ratio is negative, further emphasizing cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.93M	5.51M	3.24M	2.28M	793.09K
Gross Profit	3.72M	3.62M	2.12M	-676.98K	-435.65K
EBITDA	-4.20M	-4.33M	-3.31M	-3.25M	-924.55K
Net Income	-4.81M	-4.73M	-3.55M	-3.44M	-1.07M
Balance Sheet
Total Assets	7.79M	9.25M	8.46M	4.76M	1.98M
Cash, Cash Equivalents and Short-Term Investments	158.22K	164.30K	3.02M	905.05K	128.57K
Total Debt	3.85M	7.16M	3.85M	3.39M	2.59M
Total Liabilities	5.19M	8.41M	4.17M	3.57M	2.73M
Stockholders Equity	2.60M	846.41K	4.29M	1.20M	-752.40K
Cash Flow
Free Cash Flow	-4.56M	-5.59M	-3.98M	-2.45M	-1.00M
Operating Cash Flow	-3.45M	-3.18M	-3.30M	-1.95M	-884.93K
Investing Cash Flow	-977.22K	-2.41M	-681.53K	-498.22K	-115.84K
Financing Cash Flow	4.42M	2.74M	6.09M	3.22M	1.13M

Reborn Coffee, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REBN, the sentiment is Positive. The current price of 2.95 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.67, and above the 200-day MA of 2.71, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 37.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REBN.

Reborn Coffee, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FWRG	68 Neutral	$1.09B	272.17	0.69%	―	14.53%	-83.26%
GTIM	65 Neutral	$17.63M	14.27	3.85%	―	1.84%	12.10%
Sector *	63 Neutral	£1.73B	10.39	4.37%	3.49%	0.66%	-39.52%
CHSN	59 Neutral	$3.76M	13.44	4.99%	―	3.95%	1180.00%
BTBD	53 Neutral	$10.57M	―	-28.39%	―	4.71%	-72.09%
FAT	45 Neutral	$36.14M	―	38.50%	147.32%	0.96%	-57.29%
REBN	44 Neutral	$13.89M	―	-402.19%	―	3.39%	39.45%

Reborn Coffee, Inc. Corporate Events

Reborn Coffee Completes Fourth Tranche with Arena

Reborn Coffee, Inc. entered into a Securities Purchase Agreement with Arena Investors, involving the issuance of secured convertible debentures and common stock purchase warrants. On July 31, 2025, the company completed the fourth tranche of this agreement, issuing debentures worth $833,333 and additional warrants to Arena Investors. This transaction, which included the issuance of incentive shares, reflects the company’s strategic financial maneuvers to secure capital and potentially enhance its market position.

Reborn Coffee Receives Nasdaq Delisting Warning

On May 29, 2025, Reborn Coffee, Inc. received a notification from Nasdaq indicating that its stockholders’ equity had fallen below the required minimum of $2,500,000 for continued listing. As of March 31, 2025, the company’s stockholders’ equity was reported at $415,582. The notification does not immediately affect the company’s listing, but Reborn Coffee has until July 13, 2025, to submit a compliance plan. If accepted, Nasdaq may grant an extension until November 25, 2025, to meet the requirements. The company is exploring options to regain compliance, but there is no assurance of success.